Foreclosure Guidelines in South Carolina

Highlights:

Judicial/ Non-Judicial Foreclosure: Only Judicial Foreclosure

Right of Redemption / Deficiency Judgment: No / Yes

Timeline: Varies depending on individual cases

Deed of Trust / Mortgage as Security Instruments: Mortgage

 

Judicial Foreclosure process:   

In a Judicial foreclosure process, the lender should file a lawsuit against the borrower in case the borrower happens to default on their mortgage payments. The court will then verify the same and it will give a certain amount of time for the borrower to pay up all their dues. If the borrower fails to pay up their dues within the said period, the court authorizes the foreclosure sale by issuing an order of foreclosure. The following procedures are followed for the same.

A notice of sale containing all the details of the borrower/ lender, their correspondence address, the location / other details of the property, time, date, location & terms of the foreclosure sale, etc. should be prepared and pasted on the front door of the courthouse and at least two public places, within three weeks from the actual date of sale.

This notice also needs to be advertised in a local newspaper for the same period. The foreclosure sale proceedings are conducted by a sheriff at the courthouse of the county where the property is located. It is conducted on the first Monday of any month as long as it is a working day. If it is a holiday, the sale can be conducted on the following Tuesday. Unless closed earlier by the Sheriff, the sale can be conducted between 11:00 AM and 5:00 PM.

In South Carolina, Upset bidding is allowed. That means, irrespective of the highest bid on the date of the foreclosure sale, anyone can still offer a higher price than that amount over a period of thirty days after the foreclosure sale date, as the bidding process is kept open till that period. It is only after 30 days of the foreclosure sale date that the highest bid is approved and the property is finally sold off to the highest bidder. Any deposit made by the highest bidder during the initial foreclosure sale date is refunded to them if someone else makes a higher bid within the next thirty days.

If the sale price is filed in the Sheriff’s office within three months and no one has raised any objection, the sale will be considered complete and the transfer of deed happens to the highest bidder. The borrower’s have no right of redemption in South Carolina but the lenders can file for deficiency judgment in case the value offered by the highest bidder is less than the total amount due by the borrower.